Wednesday, 3 February 2016

How has Indian Economy shaped over decades?

The Indian economy is considered to be one of the fastest growing economies in the world but still it is classified as a developing country. The Indian economy predominantly depends on the agricultural sector and majority of the population is dependent on this sector for livelihood. The productivity of this sector is quite low as compared to that of the other countries. Indian economy is at a developing stage and the primary, secondary, tertiary sectors are not yet fully developed. The agricultural sector is one of the oldest economic sectors and perhaps the most dominant one.

A farmer shows wheat crop damaged by unseasonal rains in his wheat field at Sisola Khurd village in the northern Indian state of Uttar Pradesh,
March 24, 2015. (Photo: REUTERS)

On the eve of Independence, the Indian economy was in complete chaos. The Indian government should have framed some policy so as to bring rapid progress in the industrial sector of the country. India being dependent only on the agricultural sector cannot be developed nation unless the industrial sector grows. It is essential for the industrial sector to grow fast else the huge population of India cannot rely only on the agricultural sector.

In the present scenario, the reasons why the Indian economy is still classified as a developing nation have been enlisted below:

•India possesses a huge amount of natural resources but most of them are unexploited and under-utilized. These resources need to be utilized judiciously to enhance the economic growth and development.
•The uneven distribution of wealth is also a contributing factor towards its hindered development. Although the national income has been increasing still it is not properly distributed among various sections of the people.
•The agricultural productivity is quite low and there are no modern technologies being implemented which can help in the development of the economy.
•The use of outdated technology and inadequate capital also makes India counted among the developing nations.

There are certain features of Indian economy like low per capita income, chronic unemployment, heavy population pressure, low capital formation, unequal distribution of wealth, use of outdated technologies, poor economic organization, political instability which classifies India as a developing country. However in the last few decades, India has witnessed a substantial growth in the industrial sector including manufacturing, mining, construction, electricity supply and many more. There has been a growth in the gross domestic product of India (GDP) also.

Since independence India has witnessed only a basic growth in the industrial sector but as years have passed many more industries has been developed like heavy engineering, locomotives, mineral- based industries, Information technology and many more. With the Startup boom where India ranks third in the world next only to the US and the UK, startups in India give younger generations a ray of hope for more employment opportunities and economic prosperity. In the upcoming years if India continues to grow with a proper growth rate then that day is not far when India will be declared as a developed nation.

Article byAnisha DuttaShe is a content evangelist who believes that the Science of today is the Technology of tomorrow. She can be reached at https://twitter.com/Anisha_Dutta29